Global tech stocks fall as chip sell-off deepens; UK mortgage rates rise
8 reported
A sell-off in technology stocks has spread from the United States to Asia and Europe, with major chip-related companies seeing significant declines. The Stoxx Europe 600 fell 0.5%, led by a 1% drop in its tech sector, while Japan’s Nikkei 225 dropped nearly 5%. The sell-off follows steep falls in US memory and computer storage makers, with Sandisk, WesternDigital, and Seagate all down more than 9%. In the UK, at least 13 big lenders have increased mortgage rates this week amid renewed Middle East tensions, with the average two-year new mortgage rate rising to 5.5%. The fashion brand Burberry saw shares fall about 6% after reporting that the impact of the war in the Middle East was affecting tourist spending. A chemical tanker was also boarded by armed assailants off the southern coast of Yemen, with the incident appearing related to Somali piracy rather than the Houthi movement.
What’s reported
The Stoxx Europe 600 fell 0.5%, led by a 1% decline in its tech sector.
ASML, Infineon Technologies, and STMicroelectronics each fell about 4% to 4.7%.
Japan’s Nikkei 225 dropped nearly 5%; the Chinese SSE Composite fell 3.3%.
US chip companies Sandisk, WesternDigital, and Seagate all fell more than 9%; Intel and Micron fell about 6%.
At least 13 big UK lenders increased mortgage rates this week; the average two-year new mortgage rate rose to 5.5%.
Burberry shares fell about 6% after reporting that the Middle East conflict affected tourist spending.
A chemical tanker was boarded by armed assailants off southern Yemen; the incident appears related to Somali piracy.
Netflix reported Q2 revenues of $12.56bn but its stock fell 9% in pre-market trading after weaker-than-expected forward guidance.
Key figures
Joshua Schulman, Burberry boss
Kathleen Brooks, analyst at XTB
Adam French, head of consumer finance at Moneyfactscompare
Christopher Forbes, head of Asia and Middle East at CMC Markets
Kei Okamura, portfolio manager at Neuberger Berman in Tokyo
Kevin Warsh, mentioned in relation to Federal Reserve policy
Sources: The Guardian
